TODAY’S TOP ARTICLES – 13 NOV 2013

Mexico: Fed taper could be good for Mexico: Carstens
According to Agustin Carstens, governor of the the Bank of Mexico, tapering of the Fed’s asset purchase program could be a good thing for Mexico if managed properly. The common perception is that tapering will hurt emerging markets but Carstens explains that it could restore some balance and normalcy in market dynamics. Carstens noted that Mexico can only absorb a limited amount of capital, but if the right pace of capital flows is maintained then tapering should not be a major problem.

Global: ECB and Fed to fight deflationary pressures
The Bloomberg article explains how the main central banks are aware of deflationary pressures in the economy and thus they are ready to implement more stimulus measures if needed. However, the author also points to the risk of asset bubbles, as it seems to be easier to inflate asset prices than to alter inflation expectations.

France: European Commission says France’s budget is “satisfactory”
As Reported by Reuters, European Commission President Jose Manuel Barroso called France’s 2014 budget “satisfactory” on Monday, but also claimed that the country still needs to do more to reduce unemployment. Barroso’s comments come after the recent downgrade of the French credit rating by S&P’s.

Greece: Distance separating Greece and troika getting smaller, says Stournaras
Ekathimerini reports that after holding talks on Tuesday with Finance Minister Yannis Stournaras, the international lenders accepted that the fiscal gap for 2014 might actually be EUR 1.5 billion. Nevertheless, the troika’s latest estimate is still EUR 1 billion above Greece’s estimate.

Germany: Brussels warns over German excessive trade surplus
This Reuter’s article explains that the European Commission warned -among other subjects- that the German trade surplus might be excessive for the stability of the European Union. The text also provides arguments in favor of Brussels’s critique of German trade situation, as well as the German reaction to those critiques.

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